Download Direct Mail, The Power of Relevant Communications

Graphic Communications
Direct Mail
Direct Mail
The Power of Relevant
Communications
The Direct Mail Opportunity
By all accounts, direct mail is one of the best opportunities worldwide in print
services today. And customers welcome it. Consumers prefer direct mail for receiving
marketing and promotional information1 and direct mail gets customers attention;
81% of households read or scan some or all of their advertising mail2. In addition,
direct mail and catalogs outperform other media in building traffic to a website, phone
number, store or other business3. Even the younger generation prefers mail.
Direct Marketing Trends
• Brand Loyalty
Use of mail to connect with your customer
• Customer Satisfaction and Retention
Programs to continue delighting customers
• Marketing ROI
Continued focus on returns from
marketing programs
For example, 70% of consumers aged 25-34 who receive bank
statements read them on paper compared to 63% of consumers
aged 50-64. Across all ages, most printed documents are read more
than once and often for an average of three minutes4. Lastly, mail
is measurable. So marketers can track and account for the revenue
generated from their marketing investments in direct mail.
Page growth will accelerate until 2015 in Western Europe. Direct
mail and marketing collateral will be the big drivers of growth for at
least the next decade.
• Multichannel Campaigns
Provide recipient choice, one channel driving
to another channel
• Personalization
Competitive intelligence, data mining,
lead generation, e-commerce, 1:1 marketing
and CRM
• SEO
Growth in spend of search engine optimization
• Social Marketing
Spending growth; expertise of staff and
agencies will be needed
(Caslon & Company, Western Europe Color
Market Forecast, March 2008)
The key to success is creating highly relevant direct mail, made possible
with full-color digital printing technology and data-driven information.
Analysts report digital color printing is the only segment of the
printing industry showing a dramatic increase in volume. InfoTrends
is forecasting digital color impressions growth at 10% CAGR between
2007 and 2012. And Pira reports that global printing revenue from
direct mail was estimated at $35 billion in 2007 and expected to grow
at CAGR of 6.7% in 2007-2012.
Interesting Fact
Consumer response to direct mail varies by day. The number of
consumers who have done something in response to receiving
direct mail is highest on Saturday (29%). Monday mail elicits
lower levels of response (25%).5
2
InfoTrends 2007 USPS® Household Diary Study 3
DMA 2008 Response Rate Trends Report 1
4
2
5
Forrester UK Royal Mail Consumer Panel/TNS Global
The Direct Mail Advantage
Pinpoint Targeting
Businesses have many reasons to like direct mail. The average person
is confronted with 3,000 marketing messages per day – up from 500
just 20 years ago. Direct mail cuts through the clutter to reach the
precise audience advertisers seek, with messages tailored to each
individual recipient.
Great Flexibility
Direct mail can be delivered any time, in formats ranging from
postcards and letters to catalogs, product samples and gifts.
TUI, a leading multinational travel company, worked
with dsicmm, based in London, UK, to improve the travel
tickets and itineraries it sends on behalf of affiliate
agencies to tour package customers. Under the new
program, dsicmm produces about 45,000 40-page fullypersonalized checkbook-sized weekly booklets that make
travel arrangements easier to understand, resulting in savings
to TUI of £1 million annually through elimination of offset
printing and warehousing, lower postage with lighter packages
and reduced call center activity. The program has also
generated new sources of revenue with expanded advertising
opportunities and an increase in pre-booked seats and
airport parking.
Precise Accountability
Direct mail generates responses and sales, which can be tabulated
and analyzed to measure and cost-justify programs – a degree of
accountability that is unmatched by other advertising methods.
Strict Privacy
Direct mail permits businesses to communicate directly and
discreetly with customers and prospects, in a medium that
competitors cannot monitor.
Return on Marketing Investment
As organizations around the globe seek increased efficiency and fiscal
responsibility, marketing executives are not immune from the pressure
to contribute to the bottom line. To meet these demands, marketers
are working hard to improve operational efficiencies and strategic
cost cutting. According to the CMO Council’s Marketing Outlook 2009,
a survey of 650 marketers at companies worldwide in a variety of
industries, many marketers are realigning operational processes to
better support sales and drive demand generation.
In this new world of marketing, traditional channels of demand
generation are giving way to new, multi-channel, multi-touch
campaigns and programs that generate personal and relevant
communications designed to break through the clutter and deliver
results. This does not mean that traditional channels such as print and
broadcast are obsolete, by any means. But their position within the
marketing mix is changing dramatically.
Marketers are turning to integrated marketing strategies in growing
numbers. They are carefully examining all of their communications
options and increasingly selecting those that deliver targeted,
relevant communications and measurable results. More often than
not, it is the combination of multiple channels of communication
and multiple personalized and relevant touch points that encourage
an ongoing customer dialog and deliver the best returns on the
marketing investment.
Xerox is committed to educate both marketers and their direct
marketing partners with design, production and delivery of customized
and relevant multi-channel direct marketing campaigns. The focus is on
higher profits, lower costs and more productive customer relationships
through relevant marketing communications.
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With Xerox, you can market personally
A Record of Success
According to DMA, every dollar spent on direct mail advertising brings in
$11 in sales and U.K.’s Royal Mail reports every £1 spent generates £14
in sales. The key is creating relevant direct mail. And with the Xerox 1:1 Lab,
a customer program that tests customized direct mail against traditional mass
marketing mail, marketers have proof that 1:1 works. The results are compelling.
Learn more about the Xerox 1:1 Lab programs by visiting www.xerox.com/1to1lab.
A Marriage Made in Marketing Heaven
It took years for the relationship to develop, but marketing and
transactional data are now seen together everywhere. Known in the
industry as TransPromo, the pairing of relevant, personal marketing
messages with transactional bills and statements has been enabled
by the latest generation of digital color printing technology. The
growth of this application has been astonishing, with a projected 91%
annual growth from 1.6 billion pages in 2006 to 21.8 billion pages in
2010 according to InfoTrends. That’s because Xerox clients worldwide
have discovered that the marriage of these two formerly separate
applications saves production and postage costs, boosts the combined
document’s appeal and increases read/response rates.
Xerox customer, CGI, helped Solidarity Fund QFL develop a fund
statement, including appeals to invest based upon age and gender,
graphs charting investment’s growth based upon age and past
contributions and examples of local businesses that have benefited
from fund investments. Results included a 3X increase in reactivation
of payroll deductions and a 17% cost reduction in the marketing piece.
Maine Office of Tourism
Xerox partnered with DMM of Scarborough, Maine, and the
Maine Office of Tourism to provide potential visitors to Maine
with more timely and relevant information by producing a
pocket guide unique to them – including individual interests
on activities, regions, seasons and calendar events based
preferences specified on the Web. The results? Visitor
acquisition cost was reduced by 7.4% and visitor revenue was
increased by 23.4%.
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Multichannel Programs Deliver Results
Savvy marketers understand that a blend of online and offline media
delivers even better results than a single channel approach. According
to a study conducted by research firm InfoTrends, marketers report
an average improvement of 35% for multichannel campaigns that
use print, email and web landing pages over single-channel, print-only
campaigns. The study further reflects that personalization brings
even more improvement to campaign performance, with marketers
reporting an average improvement of close to 50% for personalized
multichannel campaigns over static print-only campaigns. Multichannel
communications also present a significant opportunity for print
service providers to increase profitably. Two-thirds of service provider
respondents who offer multichannel services reported improvements
in overall revenue as a result of multichannel communications, and half
of these service provider respondents agree that campaigns utilizing
print, e-mail, and Web landing pages offer high, if not the highest,
profitability among their services.
The Total Mailing System (TTMS) Xerox customer created
an online ordering system for a senior living facility customer,
allowing it to create daily personalized direct marketing
pieces on demand, targeting new residents for more than
400 different retirement settings. The pieces invited residents
to attend a variety of different events – from jazz shows to
educational health programs – and led to an increase in event
attendance up to 25%.
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Creating a successful integrated
direct marketing campaign
The development of any successful marketing campaign begins with an
understanding of the business objectives the marketer is trying to achieve.
Typically, the marketer or agency will incorporate these objectives into a creative
brief, which also outlines available resources and those that need to be created
to support the overall goals and objectives. The creative brief acts as the key
communication platform to ensure all stakeholders are in alignment as the
campaign or program is developed.
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The Anatomy of an Integrated Multichannel Direct Marketing Campaign
send
www.
Business
Case
Data Modeling
Personalized
Mailing
Personalized
Website
Personalized
Electronic
Confirmation
Telemarketing to
Non-responders
Lead Sent to
Sales Rep
Sales Rep
Meeting
Personalized
Follow-up
www.
Non-responder
Mailing
Ongoing Monthly E-mail
Shouts and Personalized
Portal Updates
Complete, real-time, end-to-end tracking and reporting of results.
Good customer and/or prospect data is also a necessity, especially as
direct marketing initiatives become more personalized and relevant.
Data may be acquired from internal sources, such as Customer
Relationship Management (CRM) databases or other internal business
systems, but need to be augmented with further individual information.
Data modeling techniques are applied to segment the data and profile
recipients to ensure that communications are as relevant as possible.
Many integrated multichannel direct marketing campaigns begin
with a personalized mailing that contains a personalized URL such as
www.domain.com/john.smith. Visiting this URL brings the recipient to a
personalized website that contains additional information about the
offer or call to action and often includes an incentive for responders to
verify—or add additional—personal information. This not only continues the dialog between marketer and recipient while ensuring that data
is as current and complete as possible, but it also introduces a means
for real-time monitoring of campaign results that is difficult to achieve
with print alone.
Of course, with even the best campaigns, not everyone will respond to
the initial contact. By monitoring who does—and does not—visit the
personalized URL, marketers can identify and contact non-responders
using alternative means such as telemarketing or an additional
follow-up mailing. These subsequent contacts are designed to
drive additional recipients to their personalized URL or, in the case
of telemarketing, gain sales or additional information to further
qualify recipients.
Once a recipient visits the personalized URL and concludes requested
actions, a personalized electronic confirmation is sent to
acknowledge the interaction. At the same time, a lead can be sent
directly to the responsible sales representative, who can then contact
interested respondents. A personalized follow-up communication,
either electronic or printed, should be the next step in the dialog. This
communication may contain an additional offer. At that point, the
recipient is considered “opted in” since he or she has participated in this
dialog. This opens the door to ongoing monthly emails, newsletters
and personalized portal updates to continue to build the relationship.
Underlying the entire process is complete, real-time, end-to-end
tracking of the campaign that allows marketers to monitor results,
refine offers and create and modify the campaign in other ways to
ensure optimum results.
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Enabling technologies
Xerox and its partners offer a wide array of enabling technologies, services
and solutions to streamline integrated multichannel direct marketing activities and
make them as efficient and effective as possible. Complete, in-depth details can
be found at www.xerox.com.
Full Color Digital Presses
Workflow Solutions
Xerox offers the industry’s broadest portfolio of digital color printing
presses. These presses, ranging from the Xerox® iGen3® and iGen4™
and the Xerox 700 to the full DocuColor® family, offer benchmark
productivity, print quality and economics for businesses of any
size. Technological and price/performance advances in full-color
digital printing technology make highly personalized full-color direct
marketing pieces more affordable and effective than ever before.
The fastest, highest quality and most effective digital press cannot
deliver optimum results without an efficient, automated workflow. The
Xerox suite of FreeFlow® Workflow Solutions provides the freedom and
flexibility to create a custom workflow that connects with customers,
reduces cost through automation and enables new applications.
From web-to-print, makeready and print and process management to
digital front ends (DFEs) and controllers, and the industry’s broadest
array of partner solutions, Xerox has the software to handle your
document needs.
Monochrome and Highlight Color
Production Printers
Xerox monochrome and highlight color cut sheet digital production
printers include DocuTech®, Xerox Nuvera®, the DocuPrint® 4590/4595
family and the 4112™/4127™. Xerox invented high-speed monochrome
digital printing more than three decades ago and has led the market
in continuing innovation. Monochrome and highlight color printing
still play a valuable role in the production of highly personalized direct
marketing pieces if full color is not required or justified.
Continuous Feed Printers
Xerox continuous feed printers include very-high-speed monochrome
and full-color devices, ideal for very long runs of direct marketing
materials. Xerox continuous feed printers have a patented print line
management for production flexibility and non-contact flash-fusing
that expands media capabilities needed in the direct mail segment.
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XMPie is a leading provider of software that creates,
deploys and tracks VDP and cross-media campaigns, leveraging
customer information for dramatic returns on marketing
investments. Visit www.xmpie.com to learn more.
Feeding and Finishing Solutions
Xerox works with more than 30 feeding and finishing partners to deliver
everything from roll feeders, booklet makers and saddle stitchers
to folders, die cutting, laminators and coaters, covering almost any
conceivable direct marketing feeding and finishing need. Xerox and
partner feeding and finishing solutions help you deliver
the utmost in finished direct mail solutions.
Ford Motor Company
Ford Motor Company and Budco, a Xerox customer, produced
targeted direct-mail pieces for 20,000 F-150 truck owners
nearing the end of their original warranties. Direct mail
was used to sell extended service contracts. Pieces were
customized by age, gender, income level and geography and
included critical details, such as when an existing warranty
expires and financing information. Between personalized
photos and data, there were more than 40,000 possible
combinations. During a market test, customized pieces
increased the response rate by nearly 6%. More importantly,
sales grew 35.7% for extended service contracts all during a recession.
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Maximize your investment
Xerox has more to offer than just technology. With decades of experience in
the industry, Xerox understands the importance of maintaining ongoing working
relationships with our customers. Our commitment to you doesn’t end when you
purchase one of our products; in fact, as many Xerox customers have discovered
over the years, it’s just the beginning. From training your staff to providing valuable
marketing information, Xerox stands behind you with far-reaching support and
outreach services.
Grow Your Digital Business
• Financial—Evaluate digital readiness, determine value-based
pricing, and boost your bottom line profits with these specialized
financial tools designed to support your digital printing program.
• Sales and Marketing—Discover effective and innovative ways to
generate new business based on your 1:1 printing capabilities. These
proven, practical sales and marketing tools include vertical industry
kits, sales representative training and marketing plans.
• Agency and Design—Educate creative agencies on the power of
designing relevant direct marketing programs utilizing digital print
technologies and data-driven programs.
• Application Development—Learn how to create exciting, profitable
new applications using data-driven information. From the photo
specialty market to digital books, from personalized transactional
documents to web-based applications, these application
development resources will open your eyes to a world of opportunity.
Turn Personalization Into Profit
Xerox has a proven track record of helping businesses like
yours get from where you are today to where you want to
be tomorrow. If you see personalized direct mail as part
of your future, there’s no reason to wait. With a call to your
Xerox Representative, you could be on your way to turning
the power of personalization into dramatically increased
productivity and profitability for your business.
Take marketing personally. Call 1-800-ASK-Xerox or visit www.xerox.com today.
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• Paper and Media—Don’t forget the basics. The right paper optimizes
both document performance and printer performance. This resource
provides a listing and samples of paper and media for digital print
technologies.
• Business Development and Training—As the leader in digital
printing for many years, Xerox has accumulated a wealth of
experience and knowledge—which we are committed to passing
along to our customers. Use our expertise in sales, marketing,
workflow and application development to your advantage with our
wide range of business development and training resources.
Depend
on Our Support
• Professional Support Services—Our business development
consultants, graphic arts specialists, production color specialists
and workflow solution managers can help you analyze your business
needs, optimize your printing processes, train your team members,
and implement the world-class workflow, software, applications and
printing solutions you need to succeed.
• The Premier Partner Program—With hundreds of members
worldwide, the Xerox Premier Partner Program is a global community
of graphic arts service providers designed to enable members to
share valuable information, make business contacts, exchange
services and make referrals. The program provides learning events,
white papers, case studies, promotions and discounts, and special
privileges at trade shows and other customer events.
• Training and Customer Events—Xerox hosts a wide range of
affordable customer training sessions on topics from broad-based
direct marketing trends to product-specific information. We also
participate in a full schedule of customer events around the world.
• Marketing and Sales Support—Xerox has accumulated a treasure
trove of market research, industry-specific information, product
information, marketing communications, customer presentations,
case studies, sales tools, application samples, announcements,
calendar listings and much, much more. Visit often to access valuable
free resources for growing your business.
• Gil Hatch Center for Customer Innovation—The world's largest
showcase of digital production printing technology, Xerox’s
100,000-square-foot Gil Hatch Center for Customer Innovation in
Webster, N.Y., houses more than 20 Xerox full-scale digital printing
solutions under one roof. The facility hosts thousands of print service
providers and corporate customers from around the world each year
at educational workshops, product showcase events and customer
appreciation events.
Direct Mail Resources
The following trade associations and publications provide up-to-date information on developments in the direct marketing sector, including technology innovations and industry trends.
Marketing Associations
AMA • American Marketing Association • www.ama.org
DMA • Direct Marketing Association • www.the-dma.org
CMA • Canadian Marketing Association • www.the-cma.org
FEDMA • Federal European Direct Marketing Association •
www.fedma.org
NMOA • National Mail Order Association • www.nmoa.org
Direct Marketing Industry Trade Publications
AdWeek • www.adweek.com
Advertising Age • www.adage.com
DIRECT • www.directmag.com
Direct Marketing News • www.dmnews.com
1to1Media • www.1to1media.com
Target Marketing • www.targetmarketingmag.com
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Environmental health and sustainability
At Xerox, sustainability is our way of doing business. We have aligned
our goals for the environment and health and safety to make an impact
across our value chain worldwide. And we have structured our direct
marketing solutions to reduce the environmental footprint of the end
product, benefiting both print service providers and their marketing
customers.
• By using print on demand for direct marketing applications,
marketers can create only the documents that are needed, saving
resources and warehouse space and reducing the waste of obsolete
materials by as much as 30%.
• Using Xerox® FreeFlow® software to automate manual processes,
manage all printing in the shop and receive jobs and orders over
the web eliminates waste and reduces labor.
• Soft proofs delivered via email or the web reduce paper use; save
phone, courier and postage charges; reduce environmental impact
of sending paper by air or ground transportation; and enable
faster turnaround.
• Xerox offers FSC and PEFC certified papers, recycled content papers,
as well as Xerox High Yield Business Paper™ that uses half the number
of trees as conventional paper.
• Each new generation of Xerox products offers more functionality
and uses less energy—saving our customers money and reducing
their carbon footprint. Xerox is a charter partner of the International
ENERGY STAR program and has introduced nearly 500 ENERGY STAR
qualified products since 1994. The annual savings from our ENERGY
STAR qualified equipment installed in our customer’s locations is
equivalent to lighting one million U.S. homes for a year.
To learn more about sustainability at Xerox and
how it can help your business be greener, call your
Xerox Sales Representative or visit xerox.com.
©2009 Xerox Corporation. All rights reserved. Xerox® and the sphere of connectivity design, DocuColor®, DocuPrint®, DocuTech®,
FreeFlow®, iGen3®, ProfitAccelerator®, Xerox Nuvera®, 495®, iGen4™, Xerox High Yield Business Paper™, 4112™/4127™, 6060™ and
650/1300™ are trademarks of or licensed to Xerox Corporation in the United States and/or other countries. TESGI167 11/09
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